According to USA Today, a company that earns more than $50,000 annually has a 1 in 4 chance of getting sued within the next year. For small business owners, losing their business in addition to everything they own is too stressful to even think about. Incorporating allows you to enter an Asset Protection plan, where you structure your business in a way that protects your personal assets separately from your business assets. Without such a backup, you stand to lose everything, including your retirement plan, in the event of a lawsuit. In a corporation, everyone involved, from the stockholders to the officers, are protected from liabilities outside of the business

Asset protection is based on the basic principle that any asset owned by a person can be reached by that person's creditor. Asset protection sets as its goal the concept of removing assets from a debtor's legal ownership, while retaining control and beneficial ownership. Over the years, numerous legal structures have been developed to split up legal title to assets from control and beneficial enjoyment.


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